Lagging electric vehicle (EV) sales have continued for Tesla (TSLA +0.59%). This week, data from the European Automobile Manufacturers' Association showed that the EV maker's European sales plunged 48.5% in October compared to the same period last year.
That new sales data didn't hurt Tesla stock, though. Shares have jumped 9.8% this week alone, as of late-morning Friday trading, according to data provided by S&P Global Market Intelligence. That's because CEO Elon Musk has investors focusing on something other than EV sales.
Image source: Tesla.
Tesla, the AI company
That October sales data wasn't a fluke. Tesla is clearly losing market share globally. Tesla sales in Europe have dropped 30% this year, even as overall EV sales jumped 26% in the region. Yet the stock is surging this week after CEO Elon Musk provided some insight into the company's artificial intelligence (AI) technology.
Musk has directed significant investments at Tesla into AI technology. He has even told investors not to own the stock if they don't believe in Tesla's future in autonomous driving and robotics. Last weekend, Musk posted on social media about Tesla's advances in in-house AI chips.
NASDAQ: TSLA
Key Data Points
He said Tesla engineers have already designed and deployed millions of AI chips across its vehicles and data centers. He added that it is finalizing its newest AI5 chip. The company is also already working on its next-generation AI6 chip.
Similar to a cadence that AI leader Nvidia has previously announced, Musk stated that Tesla aims to introduce updated chip designs into production at volume every 12 months. That has investors believing Tesla is the technology company that Musk has touted, rather than just an automaker. Its potential success in robotics and autonomous driving technologies has investors buying Musk's view this week.
